Decisions of the Swiss Federal Administrative CourtCW 20 - 2025)

Overview of the tax rulings of the Swiss Federal Administrative Court published between May 12 - 18, 2025:

Judgment of May 05, 2025 (A-5247/2023): Customs; subsequent claim of customs duties and import tax; Art. 12 VStrR; In 2021, B AG, based in Switzerland, purchased a total of around 1,800 kg of fresh meat products from abroad at a price of around CHF 12,000 from a criminal organization active in food smuggling. No customs declaration was made upon importation. The objective elements of Art. 118 ZG and Art. 96 para. 4 let. a MWSTG were fulfilled. It was disputed whether B AG and its managing director A, who was solely responsible for the purchase of meat, were each jointly and severally liable for the customs duties and import taxes not collected on the basis of Art. 12 para. 2 VStrR. This was affirmed by both the lower instance (BAZG) and the Federal Administrative Court. If a natural person acting as an organ of a legal entity has goods brought across the customs border, both the legal entity and the natural person are deemed to be customs debtors within the meaning of Art. 70 ZG and thus also liable for subsequent payment within the meaning of Art. 12 para. 2 VStR. The Federal Administrative Court also stated that the right to inspect files is limited to the subject matter of the proceedings. There is no right to full access to procedural files relating to persons involved in the smuggling organization. Dismissal of the taxpayer's appeal.
Judgment of May 06, 2025 (A-4476/2023): Customs and import tax; exemption from customs and import tax on goods for non-profit organizations; Art. 8 para. 2 let. d ZG in conjunction with Art. 17 ZV. Art. 17 ZV and Art. 53 para. 1 let. d MWSTG. X. is a charitable organization within the meaning of Art. 3 let. j MWSTG. It received donations of rocket research valves from abroad. It submitted an application to the competent customs district directorate for customs exemption based on Art. 17 ZV. According to this article, goods donated to recognized charitable organizations and relief organizations or needy persons are exempt from duty (para. 1). The donation must be appropriate to the purpose of alleviating need or harm (para. 2). The application was rejected on the grounds that Art. 17 para. 2 ZV must also be complied with in the case of donations to charitable organizations and was not fulfilled. Accordingly, customs duties and import tax were levied on importation with the assessment order of December 3, 2022. The Federal Administrative Court upholds this interpretation. It thus clarifies and amends its case law in accordance with ruling A-128/2017 of 29 March 2018 (BVGE 2018 III/2). Dismissal of the taxpayer's appeal.

Updates: